SunOpta subsidiary gets upsized €80 million revolver from three banks

By Marisa Wong

Madison, Wis., Oct. 20 – SunOpta Inc.’s Netherlands-based wholly owned subsidiary, Organic Corp. BV, entered into a multi-purpose facilities agreement with ING Bank NV, Cooperative Centrale Raiffeissen-Boerenleenbank BA and Deutsche Bank AG, Amsterdam Branch on Oct. 14, according to an 8-K filing with the Securities and Exchange Commission.

The facility provides for a total of €92.5 million in financing through three main facilities, an €80 million revolving credit facility covering working capital needs, a €5 million facility covering commodity hedging requirements, a €5 million facility designated for letters of credit and a €2.5 million pre-settlement facility covering currency hedging requirements.

The new €80 million revolver is secured by the working capital of the borrowers and replaces an existing €45 million credit facility with ING Bank NV and ABN Amro Bank NV.

The increased facility size will be used to support growth within SunOpta’s international sourcing and supply operations.

There is no set maturity to the facility, and the credit limit can be extended or adjusted based on the needs of the business and upon approval of the lenders. A lender may demand repayment of the facility at any time.

Interest is equal to Libor or Euribor plus 175 basis points. Initial interest rates are expected to be similar to the previous €45 million credit facility.

The other borrowers are Tradin Organics Agriculture BV, SunOpta Foods Europe BV, Tradin Organics USA Inc. and Trabocca BV.

SunOpta is a food and mineral company based in Brampton, Ont.

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